Itaconix (LSE:ITX) — Final Results

0:02 Good afternoon, ladies and gentlemen, and welcome to the ITACONIX PLC Final Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Please just simply type in your question at any time and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. And as usual, your participation

0:33 would be most appreciated. I'd now like to hand over to CEO, John Shaw. Good afternoon. Good afternoon. Welcome to our 2021 financial results presentation. I'm John Shaw. I'm Laura Denner. I'm the CFO. We look forward to presenting our results and outlook for the coming future. Thank you.

1:11 So first, a disclaimer that anything that we are presenting today is material present in this presentation as a disclaimer of any forward looking statements. It's becoming clear each year and each month that we're living with new urgency and global efforts to take action on climate change and create a new low carbon economy. Consumers increasingly wanna carbonize the decarbonize their lives with sustainable products that perform well and do not cost more. Retailers are stocking their actual and virtual shelves so that consumers have product choices for performance, price, and sustainability. Brands are meeting, consumer and retailer demands with new formulations for new and existing prod new existing products.

2:04 This is where ITACONIX lives and where our opportunity exists.

2:11 We have turned the unique potential of itaconic acid into a large proprietary plant based technology platform that we've developed, that we're developing to create a highly profitable greater than $100,000,000 company. We're turning our technology, sequentially into key ingredients for a new generation of consumer products. We've established a growing commercial base, using our current, ingredients that are generating high quality recurring revenues. We're developing new new ingredients for larger addressable markets that we have continued to develop and put out from our technology platform. We have global scaling in place with capital efficient production. As shown by us earning the LSE's green economy mark, we're bringing gaining wider recognition for the important role we have to play in decarbonizing everyday prod products in the emerging low carbon economy.

3:11 We've made great progress on many fronts in 2021. So just to touch on some of the financial highlights from our annual report. While we did see an overall decline in our 2021 revenues by 21% from $3,200,000 to 2,600,000 The decline was really related to a sales slump we experienced in the middle of twenty twenty one for our cleaning polymers. And there was lower sales in beauty due to high stocking levels in in late twenty twenty. Another part of our results from the 2021 annual report, our gross profits were lower from 35% to 27%. This was due to higher raw material costs as well as lower volumes being produced in 2021.

4:04 We were able to pass on these cost increases we saw in raw materials in January 2022. So we should be recovering the gross profit.

4:20 Other financial highlights are our adjusted EBITDA. With our lower gross profit, this did increase our adjusted EBITDA losses. For working capital, we did have an elevated inventory at the end of twenty twenty one to meet our demand for our customers in early twenty twenty two. This contributed to the increase in cash used in operations at year end. Looking at, our revenues from historical basis from, both by half and by segments gives a really clear insight, to our 2021 performance. Overall, revenues grew at over 40% from 2018 to '21 through through 2021.

5:07 First half revenues have grown every year over the last four years. An extraordinary strong second half in 2020 during the early stages of COVID-nineteen skewed results in 2021 to show an overall decline in revenues. As shown here on the second half of twenty twenty, there's very large, surge, at the beginning of COVID, of the COVID pandemic, that generated a high number, in the second half of twenty twenty. Revenues by segment further show that this extraordinary half came from high cleaning and high beauty sales that have since subsided on it. Overall, though, when you look at the overall picture here and what's important to catch is that our revenues and our commercial base are con continuing to grow at a very attractive rate.

6:03 Underlying this growth is a is the large base of consumer product space that we're developing. Our products are on the market to decarbonize everyday products. And with that, we're getting major growth, in the number of brands using our product. As of the end of twenty twenty one, we estimate that the total number of brands using ITACONIX ingredients is about 130, and it continues to grow in dramatic growth over the last ten years, to create a very robust base of consumer products, and customer base. That goes across, major brands in both cleaning, beauty, and hygiene with highly recognizable brands, that are adopting our ingredients for their new generations of of consumer products.

6:59 The growth that we get out of our revenue out of our customer base comes from both getting initially into the ingredients, as an ingredient in it in the consumer product, and then also the success of that product when it gets out onto the market. What we see now with the key metric we look at is revenue per household, in our target in terms of growing a large company is to increase the revenue that we get per thousand households. In North America, with the higher penetration that we're getting into major retailers, through our customers, our revenue growth has actually been, close to 60% compound annual growth rate in North America over the last four years.

7:45 Overall, it's a little bit lower because North America is the leading area for us to do the reformulations. That being said, in across both North America and Europe, you can see that we are in almost every major retailer and continuing to expand. Our customers are continuing to expand their presence in into these retailers.

8:09 In terms of our current trading, our recovering from our detergent volumes, that recovery really began in the in the fourth quarter of, 2021, and we've fully recovered our detergent volumes from the from the slowdown that we had in the third quarter of last year. And we've continued to see, steady progress in the in our volumes in early twenty twenty two. We're continuing to add new detergent brands, first in North America, where we continue to add them, and we are also starting to add them in Europe. We had our we are expanding our base into new applications. We had our first sale into a new application for sustainable fashion, and we expect that those to return into turn into recurring revenues in 2022.

8:58 We also have introduced, a new area to go into with our super absorbent. This is a product that we've had for some number of years, but we saw that the demand and the unmet need in this area has created opportunity for us, and we have slowly gone to specific customers to see about introducing this product this year. We are making progress in this area and are identifying, initial players, really specialty brands that we tend to target, for initial use. We're also expanding our using our technology platform to find new products, to bring forward. We have filed a patent applications in two areas, one in hair care and another one in composites.

9:44 The hair care product, we expect that to turn into a product later this year. While in composites, that's something that will still be further some number of years out in terms of developing that into, commercial revenues on it. In terms of what we're looking for for the rest of 2022 in terms of our key performance indicators is that our 2022 detergent revenues are higher than they were in 2020. We want to get a breakthrough in terms of initial use of our TSI three twenty two, polymer, in European dish detergent brands. And we also want to get some initial successful trials of a new hygiene application for revenues in 2023.

10:29 We did note please note that we did, sign a, agreement on an application and hygiene application with a major pulp and paper company that was announced in our trading update in April. In terms of how this commercial commercial base of uses that we have developed into a really powerful engine for long term revenue growth, we're gonna use the fin cap forecast that are out on the market right now for 2022 and 2023 to give you a sense of the dynamics of how, our revenues progress from year to year. The, and just note here that the scale on this is not specific. This is, in terms of the the priorities of where we think the revenue comes from, not from the specific dollars here. But the largest contribution comes from the growth of our current revenues our current accounts.

11:29 The, brands that you see already above there, though, those are continuing to penetrate into more and more retailers to get higher and high market share. So there's all were already significant growth built into our existing, customer base. This is the highest area of growth for us. The next area we look into is the the accounts that are starting this year, and that can be anywhere from February through until November, we'll start getting initial sales. But then next year, we would be looking at getting a full year's worth of revenues from them. So for example, if we have a first large scale production order for a European detergent brand, in in August or September, next year, we already have built in demand for that to get a full year, and that that gets, additional growth.

12:24 The last area of growth is when we get actually pull in new accounts for twenty twenty three. Usually, a new account in any one year is a fairly small sliver of our revenue growth, But it's an important part because that's what begins the cascading that you see of that and the initial sales there turning into larger sales and larger sales progressing over a two to three or four year period. So in terms of we think that's the smallest area in terms of meeting our forecast forecast out there. But when you look at that, though, what's the probability of hitting those numbers and and continuing to bring more customers into our base?

13:11 And that's where you look at what our customer pipeline is. Our customer pipeline for 2023, is well over, is well over $10,000,000, 10 to $15,000,000 in in potential projects. That project pipeline consists of a number of projects that have the potential over time of being over $4,000,000 per year. We have a new North American detergent account with that potential, and we have a new European detergent account with that potential, each of those for potential of over $4,000,000 per year that we expect to see to see potential for, in 2023. There's also a even larger number of smaller, opportunities of more than the $2,000,000 per year for a number of new detergent accounts.

14:01 We also our current sustainable fashion account to grow into a much larger account would happen in 2023. And we also have a new opportunity in odor control in the hygiene application that we think is has a potential to be a $2,000,000 plus per year, revenue opportunity. So what you see here is the dynamic of how our customer base, our existing customer base, and our existing projects, develop into ongoing revenue growth. And that's where the 40% compound annual growth from 2018 to 2021 comes from and where we expect, that it'll continue to be a building revenue base, for for dynamic growth from recurring revenues on it.

14:57 We could go a little bit deeper into where we are in, dishwash detergents. We have a breakthrough opportunity around the need for non there's a need for nonphosphate detergents, lower cost per use, more sustainability, compact single doses. We have a plant based replacement that we believe is low cost is a low cost builder system to have shine in the detergent. We brought that to market starting in 2020 with major North American brands across both premium brands, private label brands, and green brands where we established initial ignition for those brands and started the use of our ingredients. Where we are this year is we're gaining a higher share of new North American formulations of picking up more and more brands that are converting to formulations based on our product. And we're also starting to get initial success in Europe.

15:58 Where that will develop next year, next year is we believe that with the with more brands, we'll have success breeding success and the competitive there'll be competitive pressure for more brands to look, at our product for both cost sustainability and compact dosing. We think this is this is something we've been working on for many years and that we're in excellent position, to see this growth. So again, in cleaning, we have our key selling points are excellent performance in detergents, especially dish dishwashing, to bring low be a low cost replacement, for, two or more materials, when you, bring the total cost of the formula down to increase the bio based content aspect of it and have excellent safety and environmental profile.

16:54 We're going after, in dish detergent, the $260,000,000 addressable market. We think there are broader potentials outside of dishwashing detergent in other consumer, industrial, and institutional detergents, and we our current pipeline of customer projects is about 25,000,000. What you can expect to see here is initial success this year with a major European contract manufacturer. Next year, we're gonna have more success in North American and European contract manufacturers. And in 2024, have a full year of growth from from these successes. The other area to highlight is the efforts we're doing in hygiene. There is a, we have two technologies that we bring to it, both odor control and absorption.

17:45 So there is a desire for an unmet need in terms of, fresh odor controls, particularly urine. There is a a desire for more sustainability, and some, consumer products are trying to get to net zero carbon. What we we bring two technologies to it. One is the ability to neutralize fresh odors, and the second of all is to have plant based absorption. We're looking at 2023 to have our first success of a specialty brand to get these features out onto the market. In 2024, the the success of initial brand and the proof of concept to be out on the market on it, it will attract more green brands to adopt to adopt us in 2024.

18:30 And then in 2025, if we can get competitive pressure for both odor control and sustainability to advance our revenue potential further. So in hygiene, we have odor neutralization, and we have soup super super absorbent. There's a $150,000,000 addressable market for odor control, and then a a large market, 850,000,000 for for placing a a portion of the acrylate super absorbent market to go into green brands. What to expect this year is we get customer trials on the super absorbent. We are working on those. We do not have any advances, on that to report to date, but we are, working with, interesting customers, on their trials.

19:21 We also expect to get a major new application in odor control, specifically in hygiene area on a development that we have announced in April of an agreement that we have with a major pulp and paper company that we expect to develop into revenues next year. And then in terms of trying to get a, when the expectation is to get our super absorbent out, in terms of actually getting a customer launch on that, the development process, we think will be such that it'll be revenues in 2024. I'll touch briefly on beauty, in our bio Asterisk area. In beauty, we have our existing performance product for weightless hairstyling, that, excellent curl retention.

20:09 That is you know, continues to proceed. Not major growth this year on it. We do have a new ingredient under development based on a patent that we filed and announced, about two months ago, for some new technology to bring to the market. We're looking at an addressable market of about a $180,000,000 for hair fixatives and then another $20,000,000 addressable market for foam enhancement, in beauty products. We expect the first trial, of our new beauty ingredient, that we that we expect to both launch this year and get our first customer trials on it. We expect to get our first revenues off this new beauty ingredient, next year, and then we're looking in 2024, to develop another new beauty ingredient.

21:00 BioAsterix, I'll touch on briefly. In terms of the ingredient that we have is an additive to biodegradable plastics, development on that continues to be slow. We do not expect any revenues in the near term on that. We have filed a patent application for a new material to go into composites, It's $600,000,000 addressable market for that. We hope that next year to have a formal collaboration in place, to bring that ingredient forward with a partner in the composites area and that the first customer launch would that be in 2025. So in summary, in terms of decarbonizing everyday products, we have excellent technology base for bringing forward performance, cost, and sustainability.

21:52 We're very good at identifying, how our technology can be turned into high value added ingredients that meet, immediate customer needs, and we're doing that successfully. We've done in doing so, we've established a strong commercial base of customers, with high high quality recurring revenues. That's all being done off a very large proprietary technology platform that we can continue to access, for many, many years in terms of finding new new product opportunities.

22:24 We do not see a high level at all of direct competition in our specific area of chemistry, and we do not use a lot of capital in terms of bringing these chemistries into its commercial markets. As we said, we our our our current plant, which we built for a million dollars, and we maybe have put a few $100,000 more into it, that continues to have a revenue potential of well over $10,000,000 for that area. And then some of our new products, we actually can use contract manufacturing for of generic chemistry contract manufacturing. So we think we continue to be in excellent position in terms of meeting our revenue needs without major capital investment requirements at this time.

23:19 That's great, John. That concludes the presentation. Thank you very much indeed to both John and Laura for updating investors this afternoon. Could I please ask investors to continue to submit your questions using the Q and A tab situated on the right hand corner of your screen? So I'll give Laura and John just a few moments to review those questions submitted already today. I'd like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your Investor Meet company dashboard. Laura John, we've had a number of questions from investors, we had a number that were presubmitted, of course, of which we will provide all those responses, as I said, on the Investor Meet company dashboard. But perhaps I could start the Q and A session off with the first question, which is reads as follows. What date will you be issuing a trading update for the first half of twenty twenty two?

24:07 Our our our general practice is to provide a trading update of high level revenues and cash somewhere in the third or fourth week after the end of the end end of a period. So we'd expect it sometime in the middle of July. Thank you very much indeed. If I may turn to a question from Roger. Thank you, Roger. Roger asks, oops, sorry. I've lost that question. Oh, there it is. What premiums are customers prepared to pay for green materials over traditional fossil based ones? That varies dramatically by a specific market segment, but our key value proposition is to deliver sustainability with better performance at a an equal or lower cost.

24:54 So in terms of the products that you're looking at, in terms of what we're asking customers to do, we are trying to do it without asking for any premium on it. We think that's the capability that we have in our technology platform. We think that's the capability that our current products have,

25:12 and that's the the key focus that we have. We may selectively go into it. Super absorbents, I think they will pay a a slight premium, maybe a 20 to 30% premium for the material there. But in general, we are focused on areas where same cost, better performance, and higher sustainability. That's great. Thank you, John. We've got a couple of questions, one from Andrew B and one from David about the same topics, if I may, your two questions. John, do you have conviction remeeting broker revenue targets for '22 and 2023? I think in line with what you can say about that, John, if got you've any comments there. I believe in our April statement trading update, we already stated that we are in line.

26:03 We support current market expectations. I think we stated that in April. Thank you very much indeed. Let's turn to a question from David Dee, if I may. Thank you, David. Can you elaborate on your current supply chain challenges? What contingencies are in place? And with you being able to fully pass on cost increases? I note that gross margins fell from 35 to 27% last year. So the it is a pretty volatile market, not as much just for our ingredient that's going into the detergents. Frankly, the formulators are having a much more difficult time with the other ingredients going into detergents, like surfactants, citric acid, propylene glycol.

26:48 Those prices have have doubled, if not tripled.

26:51 So in relative terms, within within the ingredient, the increases that we're passing on are relatively small relative to to what other ingredients in the formulation happy in formulations. We we do pass them on. I think when a in early stage of of a company's in the early stages of a launch where we've given them pricing some number of months out so that they could get initial product out, We'll keep we'll support them through the initial launch and then and then continue to pass on increases. So we have been successful at passing them on. I I think the lower margins in last year, a lot of that was related to the slowdown in volumes and how that absorbed.

27:37 And we are continuing to monitor how we can keep our keep pass passing on the price increases. I would say that the for the first, at least for the first half of this year, we do not see an improvement in margins, at this point.

27:53 But we see think that can compress progress better in the second half. It's been a very volatile time of passing, passing months. Was it was there another aspect to that? Sorry. On terms of a surety of supply, yeah, we have we have all sorts of contingencies as we always have in terms of making sure we have multiple sources in in in finished good sorry, raw material inventories in place in multiple locations in The United States from multiple sources for for our raw materials. That's great. Thank you very much indeed. If I turn to a question from Ian Tee. Thank you for your question, Ian. Two chemical manufacturers in The UK, Clover and Grayland, have you approached them for new business?

28:46 We have we have been focusing on I believe they work more on in in some of the smaller in in some of the specialty cleaner areas. For right now, our focus in Europe, we we have a very large pipeline of automatic dish detergent players where we have a key advantage on it. We we were for the resources that we have, we're focused on them. I know that there are some opportunities, in some of those cleaning ones, but the we are focusing on what's the biggest the biggest wins for us where we think we have the greatest area of success. And for right now, we have a very, very full pipeline in Europe in the automatic dish area. That's great. Thank you very much indeed, John. Further question from David d. Given revenues are highly reliant on your clients' market penetration for your ITACONIX products, how much visibility do you get for future sales guidance? What gives you confidence for such future growth given the drop off in 2021?

29:46 We, for our major customers, we, get twelve month rolling forecasts, and, those have generally been pretty reliable. I would say what happened last summer, in terms of the slowdown was not seen by anybody, in terms of what happened in terms of the the backup of the inventories. So, again, that was an inventory adjustment issue, not, that the underlying demand was the same. So we do get, underlying, twelve month rolling forecast that are usually reasonably pretty good. If it's usually not if there's any error, it's usually not, it's on the timing of the order. Not whether there is gonna be an order, but the timing of an order, where the order might slip four weeks, six weeks, eight weeks.

30:35 That's great. Thank you, John. Turning to question from Max g. Do you have any customer churn with your current accounts? I how many do customers do you lose?

30:49 Well, once we're formulated in, there there's no substitution for our formulas, for our ingredients in our in most of our formulas form customer formulations, so there's very little churn. That's why you see us continually growing the number of brands that we have. I mean, included in those brands are some some of those brands go back to 2009, 2010. So we lose very little churning on our accounts because it takes a long time to get formulated in, and it takes a long time to get formulated out. Great. Thank you. Turning to Aaron m. Thank you, Aaron. What is your conversion rate on pipeline projects by percentage?

31:36 There was a lot of pipeline numbers in the presentation, but assume that not all will be converted. That's true. There are a number of reasons why a project might fall out. Sometimes the the project that we're working on is development work that the research department is doing. And probably what happens most often is a a company gets a new formulation ready to go in their marketing department sales and marketing department may decide not to launch it. Sometimes they it's a formulation where there's a potential for it, but we think that there may be other better ingredients to put in for what that customer is trying to achieve. But we still obviously try try to sample for it.

32:22 I would say in the core areas where we look for our revenue growth, we look for a high we look to make sure that our ingredient is gonna add high value. We look for customers that have some assurity that they're gonna follow through that with the successful development that they are gonna launch the product product, and that once it's launched, that they're gonna support it. I would say going back, eight years ago, we've, particularly with some of the global brands, we have found that, you can get out on the market, and then they just don't you know, they they they got the news release that they have a product out there, and then they don't support it. And you get sales for twelve months, and then it slows down quite a bit.

33:08 So for the highest probability ones that that we look for, there's pretty high success rate on them. I I'd say it's rare that it's not because our ingredient isn't working on it, and it's more that the the project may die its own death or the some form of it is dying its own death on it. So in terms of specific percentages, we put percentages on each on each and

33:38 every project on it. It varies anywhere from 5% probabilities up to 80% probabilities, and we track that. As we have dialogues with the customers, we get a sense of when it's becoming, closer and closer, to probability on it. That's great. Thank you very much indeed. James c asks, do you have any more information regarding the creation of itaconic acid manufacturing factories previously referenced and any time scales? No time scales on it. I think that that there are there are more and more sugar companies that are interested in building bio based chemical businesses, and Ionic acid is usually on the list.

34:26 And we're usually on the list if they're thinking about Ionic acid. But there's no no active projects that we're aware of. Thank you. Turning to Duncan R. Thank you, Duncan. You mentioned trading of US investors. Are you thinking of listing in The US in the future?

34:44 No. We're not planning on listing in The US. I think for the we like the AIM market quite a bit. The the expense of going on to the Nasdaq would be overwhelming for a company of our size. It would the amount of staffing and expense that's been nonrevenue generating is just not how we spend money. What we do have, related to our we do have about 30% of our 30 to 33% of our share shares held, by, US holders, including Laura and myself, and some of the original ITACONIX Corporation, holders of it. What we are doing, though, is making sure that, there's some equity between between what US shareholders can do with their shares and what UK, shareholders can do with their shares.

35:36 The issue that, for example, Laura and I have right now is because our share price is so low, is that the SEC puts some very strict regulations on it, and then the brokerage firms can put further regulations on whether or not you can hold our shares in our in our brokerage accounts. So as of today, I cannot deposit my shareholdings in a brokerage account because of the share price. So one thing you will see we are proposing in our in our proxy is to nudge if we can nudge our, share price up some, that improves the ability for The US shareholders to be able to have the freedom that UK, shareholders have of holding shares in a brokerage account. So there is a proposal for a 10 the at the discretion of the board, so it makes sure if if and when the timing is right, that we would do a 10 to one consolidation

36:35 on it. And that is up for a proxy vote, at our annual general meeting. And that that proxy was released this morning. That's a very that's the biggest issue we have on US trading right now is that, if the if the share price we're at right now, there's no way you could ever trade in The US. And even for The US shareholders right now, we don't have the freedom and value that The UK shareholders have, and that's an issue for us. Yes. And our proxy is available for viewing on our website if if you'd like to look more for more details on that. That's great. Thank you very much indeed. Let's turn to David Q who says, clearly, the need for for the change to go greener with products. Do you feel firstly that people are aware of the need to change, and are they willing to pay slightly more to go green?

37:29 That's each consumer's choice. I think it go there's still people who go for the best performance. There's still people that are gonna buy for the cheapest product on the shelf, and there are people that are gonna make the sustainable one. What you do see is that the retailers are requiring a full range of choices on the retail shelf, And that's what really drives the formulation in brand the the product development strategies of the brands is to make sure that they can get retail space. So they there is more retail space retail shelves being dedicated to green products. But remember, we when if you look at our if you look at the the types of products that we're in, we're in everything from the private label discount product to the highest performing product to the greenest product.

38:20 People are decarbonizing everyday products regardless of the choice that they're making. Because even with the highest performing one, we may be 50 to 70% bio bio based on it. The the so the the bio so that we want to we wanna play at all levels. We we want to play, and we do play at all levels. We're the we're the discount we're in the discount brand. We're in the high performance brand, and we're in the green brand. We wanna play at all levels so that regardless of the choice the consumer is making, they are also, they are still decarbonizing, regardless of what choice they think they're making on it.

39:10 John. Question here. If you do a 10 for one consolidation, will that have a negative impact on liquidity? I don't no. I think it'd probably be a posi we didn't expect to have a much a positive impact on liquidity because we have a large we have a large following in The US right now. You know, we we our business is is in the the majority of our revenues in The US. We're based in The US, and and our shares are almost impossible to trade. You you can trade them, but it's all but but brokerage accounts will not it it will not hold shares that are, you know, that are 10¢ shares.

39:56 The perception in The US of 10¢ a share companies is very different than it is here. It's just a fundamental difference between the two markets. So when you're when you're at that low of a price, it's hurting the liquidity. It's hurting the liquidity. And if you can't trade it, you're it's hurting the liquid it's hurting the ability to bring in new investors in The US. Perfect. Well, John, I think we've taken pretty much all the questions that we've had from investors. And then if any more do come through on the platform, John and Laura will make those available to you after today's call. And, of course, we will publish those responses on the Investor League company platform. I know investor feedback is always important to you both, and I'll shortly redirect investors to give you their thoughts and expectations.

40:45 But before doing so, John, I wondered if I may just ask you for a few closing comments just to wrap up with. Well, we are, what appears to be a difficult year in terms of, a decline when it's put into the context over a four year period, I think you'll see that we're in a very strong position in terms of the growth that we're the underlying growth that we have. We're in excellent position in building a large customer base. That large customer base generates high quality recurring revenues, and it keeps adding on. We have a great pipeline to go into it. So I think we are definitely on plan and on expectations to build the type of high value, high revenue company that we that we are all working towards that I hope that you are all investing in us for and that we're gonna succeed tremendously in achieving that.

41:39 That's great, John. Alright. And I thank you once again for your time this afternoon and for updating investors. Can I please ask investors not to close this session as we'll now automatically redirect you so you can provide your feedback in order the company can better understand your views and expectations? This might take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of ITACONIX PLC, we'd like to thank you for attending today's presentation. That now concludes today's session, and I wish you all a very pleasant afternoon.